23andMe’s downfall: From $3.5 billion IPO to bankruptcy filing
A court-supervised sale is now the company’s best hope for the future.
Genetic testing firm 23andMe announced on Sunday that it has filed for Chapter 11 bankruptcy protection in the U.S. to facilitate its sale, while co-founder and CEO Anne Wojcicki has resigned following multiple failed takeover bids.
23andMe, known for its saliva-based DNA test kits that help customers learn about their ancestry, had already cut about 40% of its workforce—approximately 200 employees—and halted all therapeutic development as part of a restructuring program announced in November.
Wojcicki, who will be replaced on an interim basis by CFO Joe Selsavage, has been pushing for a buyout since last April but has been repeatedly rebuffed by the company's board. She intends to make another bid during the bankruptcy process, she said in a post on X, without providing details.
Her most recent offer, made earlier this month, was $0.41 per share—an 84% reduction from a prior bid last month after her private equity partner withdrew following the board’s rejection.
That latest offer valued 23andMe at approximately $11 million, well below its current market capitalization of $50 million, according to LSEG data, and a dramatic decline from the company’s $3.5 billion valuation when it went public in 2021.
2 View gallery
23andMe co-founder and CEO Anne Wojcicki has resigned following multiple failed takeover bids.
(Photo: Bloomberg)
"After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business," Chair Mark Jensen said in a statement.
23andMe said it has secured a debtor-in-possession (DIP) financing commitment of approximately $35 million and expects to continue operating during the sale process. However, the company did not disclose whether it has received any other buyout interest or offers.
It listed both its assets and estimated liabilities as ranging between $100 million and $500 million.
A month before announcing its restructuring, 23andMe agreed to pay $30 million and provide three years of security monitoring to settle a lawsuit accusing it of failing to protect the privacy of 6.9 million customers whose personal information was exposed in a 2023 data breach.
